HB 25-1186
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1186: WORK-BASED LEARNING EXPERIENCES IN HIGHER ED
Prime Sponsors:
Rep. Martinez; Lukens
Sen. Rich; Michaelson Jenet
Published for: Senate Education
Drafting number: LLS 25-0734
Fiscal Analyst:
John Armstrong, 303-866-6289
john.armstrong@coleg.gov
Version: First Revised Note
Date: May 1, 2025
Fiscal note status: The revised fiscal note reflects the reengrossed bill.
Summary Information
Overview. Conditional on the receipt of sufficient gifts, grants and donations, the bill creates a pilot
program for work-based learning in the Department of Higher Education. It also requires data collection
and a glossary of terms for work-based learning.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Expenditures
State Revenue
Institutions of Higher Education
Appropriations. No appropriation is required. The Higher Education Work-based Consortium Fund is
continuously appropriated to the Department of Higher Education.
Table 1
State Fiscal Impacts
1
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
State Revenue (Gifts, Grants and Donations) at least $2 million $0 $0
State Expenditures
2
$612,372 $637,540 $637,540
Transferred Funds $0 $0 $0
Change in TABOR Refunds $0 $0 $0
Change in State FTE 1.6 FTE 2.0 FTE 2.0 FTE
1
Information shown in this table is for informational purposes only. Timing of revenues and
expenditures may occur in later years if gift, grants and donations are received later.
2
State expenditures only occur if sufficient gifts, grants and donations are received. Page 2
May 1, 2025 HB 25-1186
Table 1A
State Revenue
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
General Fund $0 $0 $0
Cash Funds (Gifts, Grants, and Donations) at least $2 million $0 $0
Total Revenue $0 $0 $0
1
At least $2 million must be received in the Higher Education Work-based Consortium Fund for the
pilot program to be implemented. The timing of any funds received is not known, and is shown in
FY 2025-26 for informational purposes.
Table 1B
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
General Fund $0 $0 $0
Cash Funds (Gifts, Grants, and Donations) $581,256 $598,644 $598,644
Federal Funds $0 $0 $0
Centrally Appropriated $31,116 $38,896 $38,896
Total Expenditures $612,372 $637,540 $637,540
Total FTE 1.6 FTE 2.0 FTE 2.0 FTE
Summary of Legislation
Pilot Program and Consortium
Conditional on the receipt of $2 million in gifts, grants and donations, the bill creates the
Work-based Learning Consortium Pilot Program in the Department of Higher Education (CDHE).
The bill requires the CDHE to convene a consortium of members who will work participating
institutions of higher education (IHEs) to promote work-based learning in higher education,
study the impact of industry-sponsored projects on learning outcomes, and measure impacts to
students who participate in work-based projects while enrolled in higher education. IHEs may
use any funding received to cover expenses related to work-based learning programs.
The consortium must work with a third-party vendor to connect faculty from IHEs to potential
employers who can assist in creating work-based learning opportunities for students. This
vendor must work with the Department of Labor and Employment (CDLE), IHEs, and the Office
of Economic Development and International Trade (OEDIT) to recruit businesses to participate in
the program. The bill requires CDHE to submit a report to the legislature to report on outcomes
of the pilot program. Page 3
May 1, 2025 HB 25-1186
Pilot Program Funding
The bill creates the Higher Education Work-based Consortium Fund, which may accept gifts,
grants and donations. Money in the fund is continuously appropriated to the CDHE. If the fund
has not received $2 million in donations by June 30, 2028, all money must be returned to the
donors. Any unspent and unreturned money in the fund reverts to the General Fund.
Data Collection and Glossary
By November 1, 2026, the bill requires the Commission on Higher Education to recommend a
list of terms used by IHEs to include in the talent development glossary, which is maintained by
the Workforce Development Council. This list must be developed in partnership with IHEs, the
Workforce Development Council, nonprofits, and higher education faculty.
Finally, the bill allows the Commission of Higher Education and IHEs to spend financial aid work
study appropriations to cover costs of work-based learning experience for students.
Universal High School Scholarship Technical Correction
The bill also makes conforming amendments and technical corrections in statute to the
Universal High School Scholarship Program in OEDIT to align with transfers made through the
budget process. These changes do not require any adjustment to state appropriations and are
not discussed further in this fiscal note.
State Revenue
The bill may increase state revenue from gifts, grants, and donations to the Higher Education
Work-based Consortium Cash Fund. At least $2 million must be received for the program to be
implemented. For informational purposes, the fiscal note indicates $2 million received in
donations in FY 2025-26, but actual revenue and timing may vary. At the time of writing, no
sources of funding have been identified. Gifts, grants and donations are not subject to the
state’s TABOR revenue limit.
State Expenditures
Conditional upon the receipt of sufficient gifts, grants, and donations, the bill increases state
expenditures in the CDHE, paid from the Higher Education Work-based Consortium Cash Fund.
If funding is received in FY 2025-26, the program will result in $612,000 in state expenditures in
FY 2025-26 and $638,000 in FY 2026-27 and FY 2027-28, as listed in Table 2 and discussed
below.
For informational purposes, the fiscal note shows program costs if they were to begin in
FY 2025-26 and assumes grant funding will be spent over three years; however, actual timing
and actual amount of expenditures may vary. The bill also minimally affects workload for IHEs,
the Department of Labor and Employment, Department of Education, and the Office of
Economic Development and International Trade. Page 4
May 1, 2025 HB 25-1186
Table 2
State Expenditures
Department of Higher Education
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
Personal Services $120,868 $151,084 $151,084
Operating Expenses $2,048 $2,560 $2,560
Capital Outlay Costs $13,340 $0 $0
Third Party Vendors $427,000 $427,000 $427,000
Faculty Stipends $18,000 $18,000 $18,000
Centrally Appropriated Costs $31,116 $38,896 $38,896
Total Costs $612,372 $637,540 $637,540
Total FTE 1.6 FTE 2.0 FTE 2.0 FTE
Department of Higher Education
Staff
CDHE will require 2.0 FTE, including a Project Planner and a Curriculum Director, to implement
the bill. These positions will convene and support the consortium, complete required reporting,
coordinate with faculty and business leaders, and manage databases. Costs are prorated to
assume a September 2025 start date and standard capital outlay and operating costs are
included. Staff is assumed to continue for three years.
Third-Party Vendors
CDHE will contract with two third-party vendors to implement the bill, estimated at $427,000
annually, paid from the Higher Education Work-based Consortium Cash Fund. One vendor will
help participating IHEs connect faculty to industry representatives and develop work-based
learning opportunities for students. The fiscal note estimates that four IHEs in the state will
participate and the vendor contract will be an estimated $65,000 per year. The second vendor
will be contracted to identify outcomes of the pilot program, share best practices and connect
both CDHE and IHEs with funders. The contract is estimated at $167,000 annually for the
assumed three-year duration of the pilot program.
Faculty Stipends
CDHE will provide a $1,500 stipend to each participating faculty member who contributes to the
pilot program. The fiscal note estimates that three faculty members from each of the four
participating IHEs will receive a stipend, resulting in $18,000 annually for the three-year duration
of the grant. Page 5
May 1, 2025 HB 25-1186
Other Reporting
CDHE will have increased workload to develop the talent glossary and gather additional data
from IHEs to comply with the data reporting requirements in the bill. This additional workload
will be accomplished within existing resources.
Other State Agencies
CDLE will work with CDHE and the third-party vendor to recommend businesses to participate in
the pilot program, serve on the consortium, and integrate the additions to the current talent
development glossary. OEDIT and CDE will also work with the other agencies and IHEs to recruit
businesses to participate in the pilot program and serve on the consortium. This additional
workload is assumed to be minimal and no appropriation is required.
Institutions of Higher Education
Subject to data availability, all IHEs will have increased workload to meet additional reporting
requirements for work-based learning. Those IHEs that choose to participate in the pilot
program will have increased receive services from the vendors discussed above, support from
the consortium, faculty stipends, and have increased workload to develop curriculum and
provide students with opportunities to earn work-based learning credits.
Centrally Appropriated Costs
Pursuant to a Joint Budget Committee policy, certain costs associated with this bill are
addressed through the annual budget process and centrally appropriated in the Long Bill or
supplemental appropriations bills, rather than in this bill. These costs, which may include
employee insurance, supplemental employee retirement payments, leased space, and indirect
cost assessments, are shown in the expenditure table(s) above.
Effective Dates
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State and Local Government Contacts
Higher Education
Labor
Office of Economic Development
Labor and Employment
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.